PATTERNS OF CROWDFUNDING: MALAYSIAN VS INTERNATIONAL CROWDFUNDERS

PATTERNS OF CROWDFUNDING: MALAYSIAN VS INTERNATIONAL CROWDFUNDERS

Patterns of Crowdfunding

PATTERNS OF CROWDFUNDING:
MALAYSIA VS INTERNATIONAL
CROWDFUNDERS

Jahliah Mahat
PBS1411660

Putra Business School
Universiti Putra Malaysia
jahliah.mba14@grad.putrabs.gov.my
019-3484286

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Patterns of Crowdfunding

PATTERNS OF CROWDFUNDING:
MALAYSIAN VS INTERNATIONAL
CROWDFUNDERS

Jahliah Mahat
Putra Business School
jahliah.mba14@grad.putrabs.gov.my
019-3484286

Abstract
This report is prepared to give information on patterns of
crowdfunding in Malaysia and international. There are four types of
crowdfunding : there are donation, reward, equity and debt.
International market is more developing whilst Malaysia still need
government support to go further. Reward/donation based is more
popular but equity and debt crowdfunding is on the emerging side
due to demand for financial inclusion. Average of 49% successful
campaign receives their goals during the first and last 10% of the
campaign length and this campaigns exhibit a drop-off in funding
during the middle of the campaign. Thus, type of platform, business
plan, marketing plan and the right pitch are critical success factor to
ensure market gain. Mind with emerging trend in 2015, crowdfunding
might be the de facto for startups, the driver for non-profit
organization movement and the growth of equity financing. World
Bank predicted, the global market will be reaching $100 billion and
will be a way to finance non-tech businesses.

Keywords: crowdfunding, pattern, demand, critical success factor

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Patterns of Crowdfunding

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PATTERNS OF CROWDFUNDING:
MALAYSIAN VS INTERNATIONAL
CROWDFUNDERS

Crowdfunding derived from the concept of crowdsourcing that was introduced by
Jeff Howe and Mark Robinson in 2006 (Howe, 2008). It also draws inspirations from
micro finance like the initiatives of Grameen Bank, described by Morduch (1999), but
represents its own unique category of fundraising. There are four types of crowdfunding
in this...

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